Invest and Grow !!

Menu

POV on correction and bubble burst in realty sector

1. I do agree the prices in Delhi have softened a bit owing to freehold and lease hold confusion and not because of scarcity of money. There is no dreath of money yet.

2. The stabilization of prices and a dip in prices is always a healthy sign. This means real estate is consolidating at a certain price and taking a breadth for a next big leap. The more time spent in consolidation zone means a bigger leap. The theory here is simple in such a scenario the inventories which are in weak hand move to stronger hands and then command better premium.

3. In Gurgaon the flats market never come down in terms of prices. There is hunger for flats as lot for end users want to move in there own houses. I was amazed to know that people have moved in Tulip Ace on Pataudi Road where still the infrastructure needs to catch-up.

4. I have also realized that people from all parts of country and world have investments in GGN. With Dollar appreciating 20% in last few months lot of NRI’s have invested in GGN recently. They have made down paymnents in most of the cases there by having a direct benefit of 32%. Dollar at an all time high in my view, this has brought in lot of money into India.

5. Interest rates are going to and will have to soften in next few months, which will bring more home loan takers back into real estate.

I have seen these kind of phases and negative people scaring the positive people with statements like ‘World is going to be over’. This is not going to happen and if it happens even people who are not invested in RE will be impacted.

Net Net this is a great time and in my view a time to buy right set of properties at right price.

Meta

To unlock Tata Realty investment in IT parks and road projects The $100 billion Tata group, now headed by real estate and construction baron Cyrus Mistry, plans to float a real estate investment trust or a business trust in Singapore. The idea is to unlock a closely held subsidiary’s investment in projects such as IT […]

India’s realty sector is set for inflows of $ 4 to 5 billion from global investors in the next couple of years, with Bangalore, Delhi and Mumbai emerging as favourites, according to the Asia Pacific CEO of global real estate consultancy firm Jones Lang LaSalle (JLL). “The early foreign investors in India, who came in […]

Godrej Group, a major player in consumer durables and fast moving consumer goods sector, is investing heavily in the property sector and expects that realty would be the biggest contributor to the company’s business 10 years ahead. Talking to reporters here, the $3.2 billion Godrej Group’s chairman Adi Godrej said the company had increased its […]

The city developers welcomed the Reserve Bank of India’s decision of reducing the 25 basis point repo rate, hoping that it would lead to less expensive home loans. However, the buyers feel that the developers also need to slash the highly inflated property rates to make housing affordable. The developers said RBI’s move will help […]

There’s too much at stake for both builders and their lenders, as a correction would put both in a tight spot It seems that everyone, except real estate developers, wants property prices to fall. But there is some serious doubt it will happen soon, or ever. What potential buyers can hope for at best, is […]

A new law to give home buyers a better deal aims to ensure builders sell residential property on the basis of carpet area instead of ambiguous terms like “super area” while a regulator will ensure housing projects declare the status of important civic clearances. The Real Estate (Regulation and Development) Bill, which the government plans […]

Punjab and Haryana high court on Thursday asked the concessionaire, Delhi Gurgaon Super Connectivity Limited ( DGSCL), the Gurgaon police and all others concerned to put their heads together to resolve all outstanding issues to smoothen the vehicular traffic at the toll plaza on the Delhi-Gurgaon Expressway. The high court directed the National Highway Autho […]

At a time when the real-estate sector across the country is witnessing a slowdown, Kolkata, Mumbai and Pune recorded significant growth in new residential units, in 2012. According to study released by real estate consultants Cushman & Wakefield, the total new units launched across eight cities went down by approximately 16 per cent (to 162,000 […]

Vineet Relia of SARE Homes talks to Lakshmi Krupa about financial innovations, Chennai’s fascination for villa projects, and the city’s changing needs… Customers almost always come with a checklist these days, especially in suburban areas where we do gated communities. In Chennai, proximity to schools, health facilities and security are of great importance. […]

The year 2012 closed with a few notes of positivity as the inflation was below the Reserve Bank of India’s (RBI’s) projected levels and the Index of Industrial Production (IIP) growth increased in the last two months of the year, giving new hopes for 2013. Overall, 2012 remained inactive, affecting all the major sectors in […]